| Case ID |
03fd7fbf-6bca-47ea-bd60-2de0aa7bdca9 |
| Body |
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| Case Number |
Privy Council Appeal No. 52 of 1947 |
| Decision Date |
Feb 28, 1950 |
| Hearing Date |
Jan 23, 1950 |
| Decision |
The Privy Council concluded that the income in question was not exempt from income tax under section 4(e) of the Income War Tax Act. The court ruled that two conditions must be satisfied for income to be exempt: the claiming body must be a charitable institution and the income must be its income. Since the executors were the recipients of the income and held it for capital purposes, it did not qualify as income of the charitable institutions involved. The appeal was partially allowed, and the court determined that certain proportions of the income were exempt for specific years due to the absence of relevant charging provisions. |
| Summary |
This case revolves around the appeal by the executors of the will of Honourable Patrick Burns regarding income tax assessments made by the Minister of National Revenue. The key issue was whether certain income received by the executors was exempt from taxation under the Income War Tax Act, specifically section 4(e) which addresses income of charitable institutions. The court found that the executors were merely holding the income and that it did not constitute income of the charitable entities. Ultimately, while some income was found to be exempt for specific years, the majority was not. This case highlights the complexities of tax law as it applies to trusts and charitable organizations and emphasizes the necessity for precise adherence to legal definitions in tax exemptions. |
| Court |
Privy Council
|
| Entities Involved |
Royal Trust Company,
Father Lacombe Home at Midnapore,
Governing Council of the Salvation Army Canada West
|
| Judges |
LORD GREENE,
LORD SIMONDS,
LORD NORMAND,
LORD MORTON OF HENRYTON,
LORD RADCLIFFE
|
| Lawyers |
H. G. Nolan K. C.,
S. G. Dixon K. C.,
Morrison K. C.,
B. MacKenna
|
| Petitioners |
THE EXECUTORS OF THE WILL OF THE HONOURABLE PATRICK BURNS, DECEASED AND OTHERS
|
| Respondents |
THE MINISTER OF NATIONAL REVENUE
|
| Citations |
1960 SLD 71,
1960 PTD 818
|
| Other Citations |
Not available
|
| Laws Involved |
Income War Tax Act
|
| Sections |
4(e),
11
|